Arizona vs New Mexico Taxes: Income, Property & Sales

Does Arizona or New Mexico have lower taxes? We answer that in a variety of ways below:

Arizona vs New Mexico Income Tax Comparison

	Arizona	New Mexico
Income Tax Rates & Thresholds	2.55%: $0-$28,653 2.98%: $28,654+	1.70%: $0-$5,500 3.20%: $5,501-$11,000 4.70%: $11,001-$16,000 4.90%: $16,001-$210,000 5.90%: $210,001+
Median Income	$73,450	$56,420
Income Tax Paid On Median Household Income	$10,779	$7,031
Income After Tax Based on Median Household Income	$62,671	$49,389

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Arizona vs New Mexico Property Tax Comparison

	Arizona	New Mexico
Average Property Tax Rate	0.39%	0.60%
Average House Price By State	$429,910	$293,766
Average Property Tax Owed Per Year	$1,677	$1,763
Income After Income Taxes & Property Taxes Based On Median State Household Income	$60,994	$47,626

Arizona vs New Mexico Sales Tax Comparison

	Arizona	New Mexico
Average State Sales Tax	5.60%	5.13%
Average Local Sales Tax Across the State	2.80%	2.71%
Average Combined Sales Tax Rate	8.40%	7.84%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,726	$3,462
Maximum Disposable Income Based on Median Household Income	$56,268	$44,164

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Arizona	New Mexico
Income Tax Owed	$3,741	$4,086
After Tax Income	$36,259	$35,914
Income After Income & Property Tax	$34,582	$34,151
Maximum Disposable Income After Income, Property & Sales Taxes	$31,903	$31,669

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Arizona	New Mexico
Income Tax Owed	$7,331	$7,994
After Tax Income	$52,669	$52,006
Income After Income & Property Tax	$50,992	$50,243
Maximum Disposable Income After Income, Property & Sales Taxes	$47,041	$46,591

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Arizona	New Mexico
Income Tax Owed	$12,494	$13,374
After Tax Income	$67,506	$66,626
Income After Income & Property Tax	$65,829	$64,863
Maximum Disposable Income After Income, Property & Sales Taxes	$60,728	$60,148

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Arizona	New Mexico
Income Tax Owed	$17,728	$18,754
After Tax Income	$82,272	$81,246
Income After Income & Property Tax	$80,595	$79,483
Maximum Disposable Income After Income, Property & Sales Taxes	$74,350	$73,705

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Arizona	New Mexico
Income Tax Owed	$10,539	$11,704
After Tax Income	$89,461	$88,296
Income After Income & Property Tax	$87,784	$86,533
Maximum Disposable Income After Income, Property & Sales Taxes	$80,982	$80,242

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Arizona	New Mexico
Income Tax Owed	$22,370	$24,209
After Tax Income	$127,630	$125,791
Income After Income & Property Tax	$125,953	$124,028
Maximum Disposable Income After Income, Property & Sales Taxes	$116,193	$115,012

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Arizona	New Mexico
Income Tax Owed	$35,455	$37,659
After Tax Income	$164,545	$162,341
Income After Income & Property Tax	$162,868	$160,578
Maximum Disposable Income After Income, Property & Sales Taxes	$150,248	$148,904

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Arizona	New Mexico
Income Tax Owed	$49,459	$52,028
After Tax Income	$200,541	$197,972
Income After Income & Property Tax	$198,864	$196,209
Maximum Disposable Income After Income, Property & Sales Taxes	$183,454	$181,945

FAQ

Does Arizona or New Mexico have lower income taxes?

Arizona’s income tax falls into the following range:

• 2.55%: $0-$28,653
• 2.98%: $28,654+

Whereas New Mexico’s income tax is the following

• 1.70%: $0-$5,500
• 3.20%: $5,501-$11,000
• 4.70%: $11,001-$16,000
• 4.90%: $16,001-$210,000
• 5.90%: $210,001+

Does Arizona or New Mexico have lower property taxes?

Arizona has an average property tax rate of 0.39%

In comparison, New Mexico has an average property tax rate of 0.60%

Does Arizona or New Mexico have lower sales taxes?

Arizona has a state sales tax rate of 5.60% and an average local rate of 2.80% for a combined total rate of 8.40%.

In contrast, New Mexico has a state sales tax rate of 5.13% and an average local rate of 2.71% for a combined total rate of 7.84%.

Do you get to keep more money in Arizona or New Mexico?

Based on median household income after income, property and sales taxes Arizona gives you a maximum amount of disposable income of $56,268

In comparison, New Mexico gives you $44,164.

More Comparisons:

Arizona vs Nebraska
Arizona vs Idaho
Arizona vs West Virginia
Arizona vs Hawaii
Arizona vs New Hampshire

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/